tag:www.larmorescarlett.com,2013-03-21:/blog/164772016-12-09T12:47:28ZMovable Type Enterprisetag:www.larmorescarlett.com,2016:/blog//16477.23690162016-12-09T12:48:28Z2016-12-09T12:47:28Z
Debt is an almost inescapable part of modern life—and many people leave behind significant debts when they die. It usually isn't long before the bill collectors start to call on surviving family members, hoping to collect.

This is when it helps to know your rights and the law when it comes to debts and the deceased.

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-- The children of the deceased are not liable for their parent's debts. A lot of credit card companies will pressure adult children to pay off their parent's credit cards. Unless you were a joint account holder on a credit card or a co-signer on your parent's loan, you have no legal obligation to pay the debt.

-- Even husbands and wives are not usually responsible for the debts of their deceased spouse, with a few specifics exceptions. If you happen to live in one of the nine community property states, for example, you may be still be liable.

-- Being an authorized signer or additional cardholder also does not make your responsible for the debt. For example, if your great aunt made you an authorized signer on her credit cards to make it easier for you to help her manage her bills, that did not transfer the debt into your name.

-- When an individual dies, his or her estate is born. The estate becomes responsible for any final debts left behind by deceased. You should refer all bill collectors over to the executor of the estate, and request that they cease contacting you. If any of the bill collectors continue to contact you, put the request in writing. Photocopy it and send the original to the creditor via certified mail.

-- If you are the executor of the deceased's estate, you are not obligated to pay his or her debts out of your personal funds. Do not allow a bill collector intimidate you into paying them.

-- If there are secured debts, like a car payment or a mortgage, those debts need to be paid if you wish to avoid having the car or home repossessed. Generally, payments will come out of the estate. If the estate has no funds in it to pay the secured debts, the person who expects to inherit the property should consider paying the monthly bill.

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tag:www.larmorescarlett.com,2016:/blog//16477.23499232016-12-01T22:40:26Z2016-12-01T22:39:26Z
It isn't uncommon for adult children or other relatives to dispute who knows (or wants) what's best for an elderly relative. When that happens, the elder in question can end up being the one harmed the most, and nobody may be happy with the results.

If family members can't agree on who should be an elder's guardian, the state can step in and appoint a total stranger to serve as the guardian, effectively shutting everyone out and leaving everyone without a voice about what will happen next — including the elderly person involved.

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Up until recently, there had been little oversight of court-appointed guardians, and critics say that the Pennsylvania system has been rife with abuses. The courts allow the guardians to charge pretty much whatever they please for duties related the elder's care, like scheduling a doctor's appointment.

In 2014, the Elder Law Task Force recommended the creation of a state Office of Elder Justice to protect seniors from exploitation by a for-profit guardianship system that often cuts family members out of the loop. Progress and changes have been slow to develop, however.

Disputes over guardianship can start suddenly and for seemingly little reason. For example, you may think that your mother may have become a little forgetful but is far from suffering the signs of dementia that make it unsafe for her to go to the grocery store alone. On the other hand, your brother may see your mother's forgetfulness as a glaring sign that she's no longer capable of making her own decisions. Or, maybe you both agree that your mother needs a guardian, but each of you want the position.

Sometimes family disputes can even turn angry, with one family member accusing others of wanting the position in order to bleed the elderly individual out of their life savings.

One thing that people can do to prevent ending up the human object of a tug-of-war game is to pre-plan for the possibility that they will eventually need a guardian. Pennsylvania law states that judges choosing a guardian should give preference, whenever appropriate, to the nominee of the incapacitated person.

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tag:www.larmorescarlett.com,2016:/blog//16477.23324382016-11-22T00:52:27Z2016-11-22T00:51:27Z
Do you think that you're protected in the event of your spouse's death through a common-law marriage in Pennsylvania? If so, think again.

A Pennsylvania widow is now just the girlfriend of the deceased, at least as far as the law is concerned. The Superior Court, which hears appeals on cases that have already been decided once at a lower level, found that the woman couldn't back up her claim to a share of the estate left by the man she claimed was her common-law husband for 13 years. There wasn't any proof that they both believed themselves in a valid marriage and cohabitation alone doesn't grant her inheritance rights over his natural children, who took her to court.

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While it's true that Pennsylvania law does recognize common-law marriages that were contracted on or before Jan. 1, 2005, a common-law marriage can be difficult to prove in court even if there's no one to challenge you.

Typically, the court wants proof that both members of the couple considered themselves married and held themselves out to their local community as a married couple, despite the lack of legal paperwork. Many couples who think they are in a common-law relationship rely on old information about the validity of common-law marriages in the state or don't fully understand what it takes to have established a common-law marriage in the first place.

Whether the oversight was intentional or not, a little planning and some paperwork from an attorney could have prevented the heartbreak the woman is experiencing on top of the loss of her partner. Additionally, by not establishing a legal marriage, she also loses any opportunity to collect benefits as his widow through Social Security -- an issue that could be important if she's not worked regularly, had low-income jobs or becomes disabled. Also, as his girlfriend and not his wife, she loses the right to decide how to dispose of his remains, which could be emotionally devastating.

If her partner didn't really want to get legally married, for whatever reason, there were still steps he could have taken that would have secured her ability to inherit a portion of his estate. Things like an updated will, medical and financial powers of attorney and a domestic partnership agreement could have at least protected her inheritance and the right to dispose of his remains as she saw fit.

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tag:www.larmorescarlett.com,2016:/blog//16477.23262892016-11-15T19:15:28Z2016-11-15T19:14:28Z
Estate planning discussions contain a lot of terminology, which may be confusing to people unfamiliar with legalese. Before getting started on your question, you first need to know that if you are working with an estate planning attorney, he or she will be glad to answer any questions you have. Anytime you hear confusing terminology like trustees, executors and fiduciaries, you should never be afraid to ask your lawyer what these terms mean.

The term fiduciary is used in many fields but the meaning is the same for them all: a person who holds assets in trust for another. During the estate planning process, you may hear the three terms already mentioned—trustees, executors and fiduciaries—lumped together, but they are not always exactly the same. However, sometimes the terms are indeed interchangeable in estate planning. For example, a trustee or a will executor is a fiduciary because he or she is responsible for settling your estate or administering a trust on behalf of your beneficiaries.

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While anyone can be appointed as a trustee, executor or fiduciary in terms of estate planning, people often choose a professional to fill the role of fiduciary. Two examples of the kind of professionals Pennsylvania residents rely on as fiduciary include attorneys and financial advisors. For best results, it is wise to choose an alternate trustee, executor or fiduciary in case your first choice is unable to fulfill the role. This is particularly important if you have chosen a non-professional fiduciary (spouse, friend, relative, etc.).

Even if you decide to choose a friend or a family member to serve as fiduciary, it is still beneficial to seek legal advice when planning your estate. This ensures you have not made any mistakes resulting in legal, airtight estate planning documents.

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tag:www.larmorescarlett.com,2016:/blog//16477.23133472016-11-07T20:21:44Z2016-11-07T20:20:44Z
When a loved one dies, it is often difficult to cope with the circumstances of the death. Most people feel a crippling sense of loss at the beginning and just want to get through the legal issues as quickly as possible. Sometimes, after the initial surge of grief begins to dissipate, it is not uncommon for the bereaved to want a closer look at the estate planning documentation the deceased left behind. This is true for those named as estate administrator and it is true for the deceased's family members as well.

In our Pennsylvania probate and estate planning practice, we have seen many bereaved family members become concerned that their loved one's will did not reflect his or her true wishes. We understand that during such a difficult time, no one wants to start a legal battle over a family member's estate. However, we also know that making sure the deceased's wishes are followed is a crucial part of the healing process.

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While probate litigation is usually an unpleasant thought, it may be necessary to consider this as an option. There are many reasons you may feel compelled to contest a will. The most common of these reasons include:

-- Someone unduly influenced or manipulated the deceased during the will's creation

-- Outright will fraud or forgery

-- Lack of the capability or understanding to create an accurate will

-- The existence of a more up-to-date will

Probate litigation is emotionally exhausting and legally complicated. However, if you have the right legal support, it's possible to emerge from the experience with a sense of peace and closure. We invite you to explore our website for more information about estate planning and probate litigation in the Philadelphia area of Pennsylvania.

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tag:www.larmorescarlett.com,2016:/blog//16477.23060752016-11-01T22:03:05Z2016-11-01T22:02:05Z
To Pennsylvania residents without a lot of knowledge about estate administration, it may seem like a simple task. In reality, just the opposite is true. Serving as an estate administrator is nearly always a complicated undertaking. While you may feel honored that someone has placed such trust in you, it is wise to be honest with yourself about your ability to fulfill the role of estate administrator.

During estate planning, people tend to put their trust into family members or close friends. If they have not developed a good understanding of everything estate administration entails, they might not realize the person they have chosen is inappropriate. Often, it is up to the designated estate administrator to decide if he or she can handle the responsibility. If you are in this kind of situation, ask yourself these questions before you accept the role.

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-- Do I have the time to see it through? To help you answer truthfully, you should know that it can take years to fulfill your responsibilities.

-- Am I capable enough to perform my duties? Those who are good with math and have exceptional organization and investigative skills are good candidates. Being patient is also a good trait to possess.

-- Can I understand the laws governing estate administration? There is no shame if your answer is no. These laws are quite complicated and can be difficult to learn.

Accepting the role of estate administrator if you are not able to fulfill your duties properly is not doing the deceased any favors. However, if you are already in the process of administering an estate and find yourself in deep waters, you should know that an estate planning lawyer can help you complete this honorable and important role.

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tag:www.larmorescarlett.com,2016:/blog//16477.22951312016-10-25T14:13:17Z2016-10-25T14:12:17Z
It is one of the great ironies of life that by the time a person needs help, they may be too far gone to ask for it. Such is the case for one of the most vulnerable groups of people in Philadelphia, and indeed in the country. The elderly are at high risk for financial fraud, but granting durable powers of attorney may be the solution.

A Philadelphia man reported recently that his elderly mother approached him about a small loan to cover some checks that she bounced. He was surprised that she had allowed this to happen, she having worked in the business sector for more than four decades. When he questioned her about her finances, she was uncooperative.

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It turned out the man's mother had been targeted by a scam artist pretending to be romantically inclined towards her. Time and time again, the con man asked her for money, and she provided it to him. All in all, she was tricked out of possibly as much as $40,000. After realizing what had happened, the poor woman granted her son power of attorney over her financial affairs.

Defrauding seniors is a fast-growing business in the United States. Scams take many forms, including romantic appeals to lonely individuals. Creating a living will or giving power of attorney to a trusted relative are two good strategies available to help keep an older person's assets secure.

Though it may be a difficult choice to make, arranging for a durable powers of attorney to be given to a trusted loved one may be a wise financial move. Making life decisions while still of sound mind can help an individual avoid potential pitfalls later in life. Discussing options and seeking advice from a legal firm that deals with estate law in Philadelphia is a very good first step.

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tag:www.larmorescarlett.com,2016:/blog//16477.22883172016-10-21T12:31:21Z2016-10-21T12:30:21Z
The internet is truly a wonderful thing, and it has had an enormous impact on the ability to share, access and challenge information. In fact, for many Philadelphia residents who seek answers on virtually any topic, the internet is the first place that they turn. It should be noted, however, that there are many areas in which the best solution requires a personalized touch that is simply unavailable online. Estate planning is a perfect example.

The month of October has been designated National Estate Planning Awareness Month, and many people are interested in learning more about the estate planning process. After all, it is estimated that more than half of American adults do not currently have a comprehensive estate plan in place. Unfortunately, however, a different study asserts that most adults prefer to get their financial guidance and information primarily from social media.

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When it comes to seeking estate planning information online, the results can be conflicting, incomplete or even downright false. For one thing, many estate planning options are complex and are most efficient when used in conjunction with other tools and techniques. Creating a comprehensive estate plan is something of an art, and it requires a personalized approach.

The best way for Philadelphia residents to ensure that their estate planning needs are being properly addressed is to work with a professional attorney. An estate planning attorney has the skills and experience needed to construct an estate plan that suits the requirements and goals of each particular client. At the end of the day, the internet is a wonderful thing, but nothing can replace the peace of mind that comes from knowing that one's interests are being professionally looked after.

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tag:www.larmorescarlett.com,2016:/blog//16477.22754772016-10-14T15:22:31Z2016-10-14T15:21:31Z
When structuring one's estate, it is important to address each and every asset type differently. For example, cash held in a savings account will be handled differently from an investment account. A treasured stamp collection will need a different approach than shares in a business venture. Real estate offers yet another type of asset, and Philadelphia residents should understand how to incorporate real property into the larger estate planning picture.

When it comes to real estate, transferring assets is more complex than many other types of assets. Real estate cannot be passed down via a designated beneficiary, which is an option for many types of investment and bank accounts. If the property has not been placed in a trust, it will likely have to go through the probate process. That means that any maintenance expenses will need to be handled through the executor, as well as repair issues that might arise during the time of probate.

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One way to simplify matters is to create a life estate. That estate planning tool allows the homeowner to transfer ownership of the property to the desired party, while also retaining the right to live in the home for the rest of the owner's life. When the owner passes away, the property immediately passes down to the named beneficiary, outside of probate.

As with all estate planning tools, there are pros and cons associated with a life estate. Each family will have a unique set of needs and goals, especially when it comes to how real estate should be handed within an estate planning package. Fortunately, there is a solution to fit virtually every set of circumstances, and Philadelphia families should investigate all of the available options.

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tag:www.larmorescarlett.com,2016:/blog//16477.22570112016-10-07T14:08:27Z2016-10-07T14:07:27Z
Not everyone in the Philadelphia area looks forward to discussions regarding personal mortality. In fact, some people try to avoid the estate planning topic at all costs. However, in the past year, there have been some very high-profile situations that appear to be evidence that not having a set plan in place may prove problematic for family members down the line.

Anyone who reads Hollywood news will have heard by now that several stars died within the past year without having executed any sort of wills or estate plans. Stories abound of the various complications these situations have wrought for surviving family members. Those whose assets are of high net worth value are by no means the only ones who benefit from crafting solid estate plans and keeping them updated.

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An estate plan is customizable; therefore, there is no prerequisite for what may be included. Priorities vary according to individual needs and goals. Many parents, for instance, place particular importance on naming guardians to care for their children should they themselves die or become incapacitated. There is no way to guarantee that the court will appoint the person parents would have chosen if no estate plan exists.

Those in the Philadelphia area who wish to research estate matters may do so online, at their local libraries or by seeking consultation with an experienced attorney. Whether your main concern pertains to child guardians, beneficiaries, living wills or medical directives, by discussing the issue with someone who has helped others achieve their goals, you can gain clarification on the legal aspects of your situation and make informed decisions regarding how best to proceed to protect your assets and provide for your family's future. Larmore Scarlett, LLP is committed to helping you accomplish your immediate and long-term estate planning objectives.

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tag:www.larmorescarlett.com,2016:/blog//16477.22465732016-09-29T15:00:36Z2016-09-29T14:59:36Z
Some people in Pennsylvania may still be getting used to showing personal photos from a cell phone or computer instead of from a dusty photo album on the shelf. However, as technology develops and evolves, it begins to affect people's lives in surprising ways. One of those ways may be estate planning. While it is important to decide what will happen to one's tangible assets after one's death, digit assets may be something people neglect when making decisions about their estates.

Digital assets can include anything a person has online that may not be tangible. This could be sentimental possessions, such as photos, but it may also be something with financial value. For example, some people may have accumulated loyalty points from using credit cards. Others may have Paypal or Bitcoin accounts or carry a credit balance on an online shopping account. The problem with these digital assets is that a fiduciary may be prohibited by state or federal law from accessing those accounts after the testator dies.

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Short of handing one's trustee a list of accounts and passwords, a person may wish to create an inventory of those digital assets. Some websites like Facebook and Google allow people to assign someone to manage their accounts when they die or become incapacitated. Other accounts need legal documentation before someone can have access. A person's attorney will be able to advise him or her which documents need to be completed to allow a trustee or benefactor access to one's online assets.

Even if a person's online assets are not worth much money, a person may still wish to protect himself or herself from fraud or identity theft if someone is able to gain access to an inactive account. Giving one's trustee instructions for and access to those digital assets may prevent them from falling into the wrong hands. In Pennsylvania, people doing estate planning are wise to discuss digital assets with their attorney to ensure that every aspect of their estate is carefully protected.

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tag:www.larmorescarlett.com,2016:/blog//16477.22388252016-09-23T14:14:07Z2016-09-23T14:13:07Z
The hit television series "Modern Family" is a favorite among viewers and critics alike. Many in Philadelphia tune in every week to watch the antics of the Dunphy family. A recent article used the family dynamics at play on the show to illustrate the various estate planning options that many modern families face in the real world.

The patriarch of the family is married to a much younger woman. She has a child from a previous marriage, while he has two adult children from a previous marriage. In terms of estate planning needs, this couple would likely focus on long-term care planning, as it is likely that the wife will long outlive her husband. As for inheritance matters, things become more complex, as the husband likely wishes to provide for both his new wife and his adult children.

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One of those children is in a committed same-sex relationship. The couple have adopted two children and would need to take a careful approach to their estate planning to ensure that their long-term care needs and inheritance wishes are provided for. The other adult child is married and has biological children. For both couples, it may be important to designate the parties chosen to be caregivers in the event of the untimely death of the parents.

Philadelphia fans of "Modern Family" are likely not thrilled to consider their favorite characters dying off. However, this approach makes use of the hit television show as something of an estate planning example. In today's society, the modern family is defined in a number of ways and requires a number of estate planning solutions.

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tag:www.larmorescarlett.com,2016:/blog//16477.22221832016-09-12T20:05:11Z2016-09-12T20:04:11Z
Once an estate plan has been crafted and is nearing completion, Philadelphia families must turn their attention to determining who will be responsible for carrying out the tasks outlined within the plan. These decisions are just as important as those laid out within the estate plan itself, as estate administration is a crucial part of turning one's intentions into reality. Not everyone is well-suited to handle the administration of an estate, and the best candidates are not always the ones that immediately come to mind.

For example, many people assume that they should name their spouse as the party authorized to handle all matters related to the estate. However, there are many cases in which a surviving spouse is unsuited for that role. An example lies in a spouse who is played little to no role in the daily management of family finances. He or she may have the best of intent, but may lack the financial acumen needed to handle the multitude of tasks associated with estate administration.

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In some cases, adult children are also poorly suited for the task at hand. Some have simply not reached the level of emotional or financial maturity needed to handle complex financial matters. Others allow their decision making to be ruled by emotion, and may not carry out the instructions outlined within the estate plan. That can lead to a great deal of tension between surviving family members, up to and including stressful and expensive probate litigation.

When determining who should be asked to handle estate administration duties, Philadelphia residents should broaden the scope of inquiry to include trusted friends and family members that might lie outside of the immediate family structure. In some cases, individuals who are slightly removed from the immediate family can maintain a degree of objectivity during the process of handling an estate and are unlikely to be motivated by intense emotion or grieving. Viewed from this perspective, designating such an individual may be a gift to a surviving spouse and children.

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tag:www.larmorescarlett.com,2016:/blog//16477.22193022016-09-09T14:42:59Z2016-09-09T14:41:59Z
For some Philadelphia families, estate planning is not a simple matter. In cases where one child is struggling while his or her siblings are thriving, it can be difficult to know how to best pass on an inheritance. Some families consider annuities and trusts as estate planning options but are unsure of which path to follow.

In the case of annuities, an adult child who has addiction issues or who struggles with financial irresponsibility would not receive the full value of his or her inheritance at any one given time. The annuity would pay out over the course of many years. This ensures that the beneficiary will always have access to a source of funds. However, annuities are inflexible and cannot be reversed once annuitized.

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Another option lies in the creation of a trust. A more responsible sibling or other family member could be granted the authority to manage the trust, with the adult child named as the beneficiary. A trust offers greater flexibility than an annuity, and it would be possible to access a lump-sum from the trust if that need should arise. However, this approach places a heavy burden on the family member tasked with managing the trust and could lead to friction within the family.

Deciding between trusts and annuities can be a challenge. For Philadelphia families who are looking into these and other estate planning options, it can be helpful to meet with an estate planning attorney. An attorney can provide families with the pros and cons of these and various other choices and help the family decide upon a course of action that meets the needs of all involved.

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tag:www.larmorescarlett.com,2016:/blog//16477.22098612016-09-01T23:50:23Z2016-09-01T23:49:23Z
For many Philadelphia families, the focus of estate planning efforts is on achieving a smooth transfer of wealth from one generation to the next. However, it is also important to give some consideration to the tasks that will be required of the person who is handling the estate. Gathering assets and distributing wealth to the designated heirs can be a stressful process, but families can take steps to make the task easier to accomplish.

One of the most important considerations when structuring an inheritance is to create a comprehensive list of personal property. This includes items both large and small, as items of seemingly little worth are often highly valued by loved ones. Creating a list of all items of personal property can help the person handling the administration of the estate know which items should go to which heirs.

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In addition to creating the inventory, individuals must also take care to update that list from time to time. As the years pass, items of property are acquired, lost, sold or otherwise removed from the estate. Having an up-to-date list can make estate administration easier to accomplish.

This may seem like a minor task in the scope of estate planning, but it is often the smaller details that lead to trouble once a loved one passes away. By creating an inventory of personal property, Philadelphia residents can provide loved ones with a road map for gathering assets, and the peace of mind of knowing that all items of property have been addressed. They will also be assured that the resulting distribution of assets is in line with the intentions of the deceased party.